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Mexican Airlines to Merge;
Move Could Hurt Start-Ups

By

Craig Torres Staff Reporter of The Wall Street Journal

Updated June 4, 1996 12:01 a.m. ET

MEXICO CITY -- Mexico's two largest airlines have won government approval to merge, a move that will create a near-monopoly in the local airline industry and increase the struggling carriers' ability to attract a big U.S. partner.

A new company, called Cintra SA, will be formed to control Aerovias de Mexico SA and Corp. Mexicana de Aviacion SA, as well as six other operating companies, including Aeroperu and Mexican regional carriers...